M2 acquires Austar mobile customer base

Listed telecommunications provider M2 (ASX:MTU) has continued its acquisition spree announcing it is to purchase the mobile contracts and records of 15,000 Austar customers in a $2 million deal.

According to an ASX statement the deal will provide a means for M2 to expand its Southern Cross mobile business.

The Austar customer base generates some $10 million in annualised revenues and is expected to add $1.3 million in EBITDA to M2 in the 2011/12 financial year.

“Whilst only relatively modest in scale, this transaction represented an opportunity to cost-effectively expand out Southern Cross Telco business with the sizable, high quality Austar mobile customer base,” M2 managing director, Vaughan Bowen said in the ASX statement.

“Our Hobart-based customer operations team have considerable experience in supporting the telco requirements of regional Australia, having specialised in that market for more than a decade, which will ensure that the Austar mobile customers are enthusiastically welcomed.”

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